Livent (NYSE:LTHM) and Olin (NYSE:OLN) are both basic materials companies, but which is the superior stock? We will contrast the two businesses based on the strength of their earnings, dividends, institutional ownership, risk, profitability, analyst recommendations and valuation.
Insider & Institutional Ownership
98.1% of Livent shares are owned by institutional investors. Comparatively, 90.3% of Olin shares are owned by institutional investors. 0.7% of Livent shares are owned by insiders. Comparatively, 1.9% of Olin shares are owned by insiders. Strong institutional ownership is an indication that large money managers, hedge funds and endowments believe a stock is poised for long-term growth.
This is a summary of current recommendations and price targets for Livent and Olin, as provided by MarketBeat.
|Sell Ratings||Hold Ratings||Buy Ratings||Strong Buy Ratings||Rating Score|
Livent currently has a consensus price target of $10.87, indicating a potential upside of 23.51%. Olin has a consensus price target of $22.62, indicating a potential upside of 33.19%. Given Olin’s stronger consensus rating and higher possible upside, analysts clearly believe Olin is more favorable than Livent.
This table compares Livent and Olin’s net margins, return on equity and return on assets.
|Net Margins||Return on Equity||Return on Assets|
Risk & Volatility
Livent has a beta of 2.32, suggesting that its share price is 132% more volatile than the S&P 500. Comparatively, Olin has a beta of 1.53, suggesting that its share price is 53% more volatile than the S&P 500.
Earnings & Valuation
This table compares Livent and Olin’s top-line revenue, earnings per share and valuation.
|Gross Revenue||Price/Sales Ratio||Net Income||Earnings Per Share||Price/Earnings Ratio|
|Livent||$442.50 million||2.90||$126.10 million||$0.91||9.67|
|Olin||$6.95 billion||0.39||$327.90 million||$1.75||9.70|
Olin has higher revenue and earnings than Livent. Livent is trading at a lower price-to-earnings ratio than Olin, indicating that it is currently the more affordable of the two stocks.
Olin beats Livent on 8 of the 14 factors compared between the two stocks.
Livent Corporation manufactures and sells performance lithium compounds that are used primarily in energy storage, specialty polymers, and chemical synthesis application. The company offers lithium compounds for use in applications that have specific performance requirements, including battery-grade lithium hydroxide for use in high performance lithium-ion batteries; and supplies butyllithium, which is used as a synthesizer in the production of polymers and pharmaceutical products, as well as a range of specialty lithium compounds, including high purity lithium metal, which is used in the production of lightweight materials for aerospace applications and non-rechargeable batteries. Livent Corporation was incorporated in 2018 and is headquartered in Philadelphia, Pennsylvania.
Olin Corporation manufactures and distributes chemical products in the United States and internationally. It operates through three segments: Chlor Alkali Products and Vinyls; Epoxy; and Winchester. The Chlor Alkali Products and Vinyls segment offers chlorine and caustic soda, ethylene dichloride and vinyl chloride monomers, methyl chloride, methylene chloride, chloroform, carbon tetrachloride, perchloroethylene, trichloroethylene and vinylidene chloride, hydrochloric acid, hydrogen, bleach products, potassium hydroxide, chlorinated organics intermediates and solvents, and sodium hypochlorite.The Epoxy segment provides allyl chloride and epichlorohydrin, as well as acetone, bisphenol, cumene, and phenol for use in resins and other plastic materials, water purification, and pesticides, as well as for the manufacturers of polymers; liquid and solid epoxy resins that are used in adhesives, paints and coatings, composites, and flooring; and differentiated epoxy resins for use in electrical laminates, paints and coatings, wind blades, electronics, and construction, as well as offers additives. The Winchester segment offers sporting ammunition products, including shotshells, small caliber centerfire, and rimfire ammunition products for hunters and recreational shooters, and law enforcement agencies; small caliber military ammunition products for use in infantry and mounted weapons; and industrial products comprising gauge loads and powder-actuated tool loads for maintenance applications in power and concrete industries, and construction industry. The company markets its products through its sales force, as well as directly to various industrial customers, mass merchants, retailers, wholesalers, other distributors, and the U.S. Government and its prime contractors. Olin Corporation was founded in 1892 and is based in Clayton, Missouri.
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